6 June 2011
After they continued falling in May, spun yarn prices began bottoming out in the last week in Pakistan. Spinners are trying to raise their offers, helped by the reduction in yarn production in the recent period, our Pakistan Correspondent reports. The need to make stocks for immediate needs is also supporting prices.
Demand for yarns last week improved on Pakistanís domestic markets and yarn processors booked a few new orders.
Asking prices were raised and quantities sold on the yarn market recovered to some extent.
Limited availability of good quality yarns also helped improving the yarn prices as many mills had previously shifted to the coarser count yarn production.
In addition, about 20-30% of yarn capacity was closed in the last month, due to difficulties in setting yarn prices.
Prices recovered by 2-4% in the last week, however still down 8-10% from the May level.
A reduction in Polyester Staple Fiber (PSF) prices allowed Polyester-Cotton (PC) spinners to lower their price offers.
Activity for 31s carded and 38s carded PC yarns picked up on Faisalabad yarn market, as a result.
Polyester-Viscose (PV) yarn prices are now very clearly increasing as seasonal demand is picking up.
PV yarn prices were last week raised by Rs.3-4 per lb on both Faisalabad and Karachi yarn markets.
Yarn demand and prices are expected to increase further on the coming days as processors are now trying to build stocks for short term requirements.
Cotton fiber prices remained stable on Pakistanís domestic market.
Both buyers and sellers were a little cautious.
Limited deals were reported on the market but mill-to-mill buying continues as yarn producers find better quality cotton from the mills stocks than at ginning factories.
Benchmark rate of the Karachi Cotton Association (KCA) was maintained at Rs8,500 per maund for grade box 3 cotton.